2015 Bringing Many Tax Changes for UK Expats in Spain

In our latest post on expat news for Spain, we bring you information on a range of tax changes that will affect Brits living in Spain

some of which are going to be very beneficial, others which could adversely affect your wallets. It is important to remember, however, that even with these tax changes living in Spain will still be much cheaper than living in the UK, which is one of the reasons many people flock to the Spanish shores every single year.

Perhaps the biggest change to the Spanish tax system for foreigners is the fact that the capital gains rate will be reduced, going from 21% down to 19% by 2016. This means that those with businesses in Spain will find that they pay much less to the government and have more left over to plough back into their business. It is also the case that inheritance tax will be drastically reduced from 34% to 1%, which will benefit many living in Spain.

Another great piece of news is that income tax has been reduced across all bands, therefore meaning that whatever your income, you’ll be paying less to the taxman. The Spanish version of VAT has not changed.

On the flip side, those who bought property in Spain before 1994 will find that, should they come to sell their property now, they will have to pay a higher amount of tax. This is because something referred to as “taper relief from capital gains tax” has now been cancelled. You’ll be exempt from this if over the age of 65 though, or if you are going to use the money to buy another property in Spain.

Hopefully that clears up some of the new tax changes being introduced in Spain that will affect expats. Make sure you keep checking back regularly to find out about more expat news for Spain!